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Electric vs. Gas Heat
Electric vs. Gas Heat: Thiele Heating & Air Conditioning, Indianapolis,
Indiana
In a shift from the past, it is now less expensive to heat with
electricity in Indiana than with natural gas.
- The cost of gas has risen an average of 8% a year over the last
10 years, a huge increase.
- Gas heating will cost Central Indiana residents more than $1,800
this winter to heat a 1,800 sq. ft. home.
- You can convert an existing gas furnace to a hybrid system by adding an
electric heat pump.
- Conversion is less expensive than to switch to an
all-electric heating system, which could cost $3,000 or $4,000
to upgrade meters, electrical boxes, wiring, etc. to get the right
service to support the system
Electric vs. Gas: Compare Up-to-Date Facts
The heating system in your home converts fuel, generally
electricity, oil, natural gas or propane, into heat. Heat is
usually
measured in "BTUs" or British Thermal Unit.
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A BTU
is a small unit of heat, comparable to the amount of heat you get from
one wooden match.
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According to Duke Energy, an average Midwest home may
use 60 to 80 million BTUs each winter.
To compare different heating fuels and heating systems we need
a common unit of measure that applies to all fuels. The "Cost
per one Million BTUs" (MBTUs) is the best way to compare heating costs
associated with different fuels and different heating systems.
Each fuel and heating system will have its own Cost per MBTUs based on
the efficiency of the system and the price of the fuel.
The estimates below help compare different fuels and
different heating systems at relatively current rates:
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The estimates are for an average home near 1800 square
feet in size in Central Indiana.
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It is important to realize that every home will cost a
different amount to heat each winter.
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Many typical homes will fall in an "average heating
cost" range, but your home may be different.
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The estimates are based on the costs per fuel listed
(Winter 2007 - 2008,)
which may be lower than your current rate.
-
All fuel costs change frequently and the costs shown
below may not be accurate for any future date. Check your most recent
utility bill for the actual rates you are being charged.
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The actual cost to heat your home in any given winter
will depend on the weather, your living habits, your home's insulation and
air leakage, the condition of
your heating equipment, sun and wind exposure, the home's design and other variables.
Note:
Fuel costs for Natural Gas and Electricity assume heating usage is all
in the lowest rate step.
Compare Fuel Costs to Estimate Heating Cost
As shown in the list above, if you know the type of heating
system and the current cost of fuels, you can easily compare different
fuels
and heating systems.
Example A: Estimated Natural Gas Heat Comparison
If you own an 80% efficient natural gas furnace and your
heating
rate is about $1.20 per therm, then from the table above:
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You will spend about $15.00
for one million BTUs.
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If your home requires 60 million BTUs per winter, your
winter heating costs will be about 60 X $15.00 = $900 per winter
If you changed to a 90% natural gas furnace:
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Cost
per million BTUs is now $13.33
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In the same winter which required 60 million BTUs, your
heating costs would be about 60 X $13.33 = $800 per winter
Example B: Estimated Electric Heat Comparison
If you own an electric furnace with no heat pump and
your heating rate is about $.06 per kWh:
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You will spend about $17.58 for
one million BTUs
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If your home requires 60 million BTUs per winter,
your winter heating costs will be about 60 X $17.58 = $1055 per
winter
If you changed to a new 13 SEER heat pump:
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Your cost
per million BTUs is now $7.64
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In the same winter which required 60 million BTUs,
your heating costs would be about 60 X $7.64 = $458 per winter
The actual cost to heat your home may be a large portion of
your total energy bill, but it is usually not the entire energy bill.
The
estimated heating cost examples used in this information are not
intended to include any other appliance usage in your home. Your
total
energy bill will be a sum of the heating costs and the cost to run all
the other appliances in your home. The division is
not shown on your
energy bill.
Source: Duke Energy
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Thiele Heating & Air
Conditioning
2468 N.
Butler Ave., Indianapolis, IN 46218
Phone: 317-639-1111
Copyright ©2006 - 2008
All Rights Reserved.
Serving Central Indiana: Boone, Hamilton, Hancock, Hendricks, Johnson,
Madison, Marion, Morgan, Shelby
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